A few months ago, I presented a commentary on negotiating and ways to be a more effective negotiator. I also deliver a workshop on negotiation, which I have done for quite a few groups in the past several months. One of the questions that arises quite often is, “Do you have any quick tips on things to avoid in a negotiation?”
So I developed “Five No-Nos When Negotiating.”
1. Going in unprepared. You need to know your options, opportunities, and have prepared how to deal with different offers, tactics, or situations that may occur during the negotiation, such as hearing that their budget has been cut or their objectives have changed.
2. Not believing in your product. If you don’t have confidence that your proposal or product will assist the prospect, or if you don’t believe in the real market valuation of those assets, it is really hard to negotiate.
3. Having no relationship. As I have always said, relationships are critical to success. If you go into a negotiation without knowing the person or needs of the other negotiator, you are walking into a minefield. I never go into a negotiation until I have learned and understood the needs of the prospect and also tried to learn all I can about their personalities. Are they bullies? Are they quiet and thoughtful? Is there an emotional link here, or is it all dollars and cents?
4. Believing there are sacred cows or things that are non-negotiable. This can be a fatal misconception. Don’t ever think that the person you are negotiating with won’t agree to something you thought they would never agree to. Put it on the table. Let them say no. Until you ask for it, you will never know. As Wayne Grezky used to say, “You miss 100% of the shots you don’t take.” I was once in a negotiation with a very shrewd businessman who sat at the table with six of his staff. We were discussing what assets they would be willing to put up for sale within his organization. It was a media outfit. The program director spoke about how no sponsor could ever title or be directly associated with their top talent. The news director said no one can influence our department. The promotions director spoke about how their promotions were theirs and not sponsors. I looked at that company owner and said, “Looks like there really aren’t any assets for sale here.” He quickly replied, “Everything is for sale for a price except my wife and children.” And that’s why he was so successful. For a price, everything is probably for sale or at least worth asking. (So you know, his three top employees at the table nearly fell off their seats!)
5. Not knowing when to shut up! You need to listen and truly hear what they are saying—both directly and indirectly. There is nothing worse than a salesperson who talks themselves and the prospect out of a deal. Discuss the issue at hand and volley the response to an offer. Participate in the discussion, but know when to stop. Often, when the discussion comes to an impasse, an uncomfortable silence occurs. Traditionally, the first person to speak is the one who gives in. That should not be you. Remember, it’s better to have no deal than to break your BATNA.
Let me know if you have any additional things to watch out for when negotiating.
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